Asian stocks rise, but investors continue to appreciate the sell-off in technology stocks

Asian stocks rise, but investors continue to appreciate the sell-off in technology stocks

 Asian stocks rise, but investors continue to appreciate the sell-off in technology stocks

Asia Pacific stocks were mostly higher on Wednesday morning. However, investors continue to gauge the impact of the sell-off in tech stocks and growing worries about a US recession due to tightening monetary policy.

Japan's Nikkei 225 was down 0.17% by 10:51 PM ET (2:51 a.m. GMT), while South Korea's KOSPI was up 0.68%. In Australia, the ASX 200 is up 0.60%.


Hong Kong's Hang Seng Index inched down 0.08%

China's Shanghai Composite rose 0.29% Shenzhen Component. Despite Beijing's continued economic stimulus promises, the country's zero-COVID policy and lockdowns have taken a toll on the economy.


JPMorgan (NYSE: JPM) cut its forecast for China's second-quarter gross domestic product to a 5.4% decline from its previous forecast for a 1.5% drop, following disappointing data in October. 4.


To support the economy, China's central bank and banking regulators have encouraged lenders to increase lending. In addition, China will provide additional tax relief of more than 140 billion yuan ($21 billion) to help offset losses to businesses due to the shutdown.


Nasdaq 100 fell 2.20%. Snap Inc, an ad-dependent stock, (NYSE: SNAP) fell 43% to trade below its 2017 IPO price of $17 after the company warned of a deteriorating economic outlook. The sell-off was also noted for major tech companies including Meta, Alphabet (NASDAQ: GOOGL) and Twitter (NYSE: TWTR).


U.S. new home sales fell more than expected in April and the Richmond Federal Reserve's assessment of business activity fell to its lowest level in two years.

Investors are shifting their focus to the monetary policy outlook on fears of a potential recession caused by tight monetary policy. They are now awaiting the minutes of the US Federal Reserve's final meeting, due later today, for more clues as to whether the tightening will continue.

"The market is shifting focus from inflation concerns to growth concerns," FL Putnam chief strategist Ellen Hazen told Bloomberg.

Atlanta Fed President Raphael Bostic, one of the central bank's dovish policymakers, urged the Fed to tighten policy cautiously and avoid 'reckless' in an essay by the bank's he wrote and published on Tuesday.

In Asia-Pacific, the Reserve Bank of New Zealand will deliver its policy decision later in the day, with Bank of Korea set to deliver a policy decision on Thursday.

On the data front, US GDP and first-time unemployment numbers will be released on Thursday.
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